Steady, As She Goes...
Resetting The Basis For Growth Q1 2011 Results Review
Q1 ’11 highlights
Margin held firm, more solid underlying fundamentals
9.2
Revenues
(€bn) • FGA up 2.6% • Double-digit increase for both Luxury & Performance brands and Components
8.6
Net profit
(€mn)
+7.1%
37 13
• Improvement of €24mn with no unusuals • Income taxes of €116mn primarily related to taxable income of companies operating outside Italy and employment-related taxes in Italy
Q1 ‘10
Q1 ‘11
Q1 ‘10
Q1 ‘11
Trading profit
(€mn) • Strong performance for Luxury & Performance brands and Magneti Marelli, with a slight contraction for FGA
230
251 542
+9.1%
Net industrial debt
(€mn) • Continued discipline in working capital management • Capital expenditure typically low in Q1
12.2 Liquidity
(€bn) • Strong position • Increase primarily attributable to reimbursement of net financial debt by Fiat Industrial, net of repayments to banks in January
Note: Q1 ’10 figures are provided herein on a pro-forma basis to reflect a carve-out of Fiat operations from the historical Fiat Group financial statements April 20, 2011 Q1 ‘11 Results Review 2
Q1 ’11 highlights (cont’d)
•
Fiat’s holding in Chrysler Group LLC from 20% to 30% following achievement of 2 of 3 performance-related events
January: attainment of US regulatory approval and commitment to produce an engine in the USA based on Fiat's FIRE family April: at least US$1.5bn in cumulative revenues for Chrysler from sales outside NAFTA region and formalization of other agreements
•
Agreement reached by Fiat Powertrain to acquire Penske Corp 50% interest in VM Motori
Closing to complete once customary approval of antitrust authorities State-of-the-art diesel engines (including newly developed V6 engine) to enlarge Fiat & Chrysler Group portfolio
• •
Bond issue of €1bn (5-year maturity, 6.375% coupon) with settlement on Apr 1st (proceeds not included in quarter-end position) FY guidance confirmed
Trading profit of €0.9 to 1.2bn Net Income of ~€ 0.3bn Net industrial debt between €1.5 and 1.8bn
April 20, 2011
Q1 ‘11 Results Review
3
Q1 ‘11
Revenues and trading profit by business
Revenues
(€mn)
FGA Ferrari Maserati 7,015 491 135
3,006 9,210
22.7%
Fiat Group Automobiles
•
Revenues up 2.6% to €7.0bn (flat at constant FX rate) on better mix, resulting from higher LCV volumes & success of Alfa Romeo Giulietta, compensated for drop in other passenger car volumes
Trading profit at €130mn (€153mn a year ago) with production efficiencies only partially offsetting impacts of European volume decline and higher R&D expenditure in advance of new model releases
3.5%
Luxury & Performance brands
Automobiles Components & Production Systems Eliminations & Others Q1‘11
• •
Significant top-line growth with Ferrari up 18.6% to €491mn & Maserati up 6.3% to €135mn Strong trading profit performance as brands benefited from higher volumes and improved mix: Ferrari up 36% to €53mn & Maserati more than doubling to €9mn
Trading profit
(€mn)
FGA Ferrari Maserati 130 53 9
61
45.2%
251 (2)
34 23 3 1
192
Components & Production Systems
(Magneti Marelli, Fiat Powertrain, Teksid, Comau)
Magneti Marelli Fiat Powertrain Teksid Comau
•
9.1%
Double-digit top-line growth for all businesses
Magneti Marelli up 16.7% to €1.5bn Fiat Powertrain up 17.1% on constant scope of operations
-2.0%
•
Automobiles Components & Production Systems Eliminations & Others Q1‘11
Combined trading profit up €19mn with increase primarily attributable to Magneti Marelli’s strong performance
April 20, 2011
Q1 ‘11 Results Review
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Supply chain & manufacturing management
Purchasing performance trend
Direct materials
Dec 09=100
Update on Japan
• •
Multifunction & Group-wide task force established for a close and continuous monitor of potential parts shortage Actions underway
Q1 ‘10 Average FY ‘10 Average Q1 ‘11 Average
Joint investigation with Tier-1 suppliers for alternative technical solutions Re-sourcing of affected components Leverage on existing company & dealer inventories to minimize impact of delays in delivery to end-customers
FY ’11E Average
•
Potential loss of European volumes of 50-100k units
Dec '09
Q1 '10
Q2 '10
Q3 '10
Dec '10
Q1 '11
25k in Q2, remainder in Q3 Q4 expected to return to normal
World Class Manufacturing
• •
Q1 performance in line with trend expected at start of year
•
Net savings of €28mn achieved
Implementation on track, with average FY savings now expected to exceed 6.5% of transformation cost
Positive net performance projected for FY, notwithstanding higher than previously expected input costs
Addition of 7 plants to program (now 80 total), with 1 Fiat Powertrain plant awarded “Bronze” level in the quarter More than 3,600 best practices identified since implementation and shared across Fiat SpA, Chrysler Group & Fiat Industrial
April 20, 2011
Q1 ‘11 Results Review
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From trading profit to net result
(€mn)
Q1 '10 Trading profit Unusual items, net Operating income Financial charges, net Investment income, net Pre-tax result Taxes Net result 230 2 232 (142) 49 139 (126) 13
Q1 '11 251 251 (138) 40 153 (116) 37
∆ +21 -2 +19 +4 -9 +14 +10 +24
“Financial charges, net” includes gain of €23mn in the mark-to-market value of two stock option-related equity swaps (€13mn loss for Q1 ‘10) and reflects cost of maintaining a high level of liquidity
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Cash flow
(€mn)
Q1 '10 Net Industrial (Debt)/Cash beginning of period Net Income D&A Change in Funds & Others Cash Flow from Op. Activities bef. Chg. in W.C. Change in Working Capital Cash Flow from Operating Activities Tangible & Intangible Capex Cash Flow from Operating Activities net of Capex Change in Investments, Scope & Others Net Industrial Cash Flow Capital Increase / Share Repurchases / Dividends (1) FX Translation Effect Change in Net Industrial Debt Net Industrial (Debt)/Cash end of period (3,103) 13 516 (107) 422 (314) 108 (577) (469) 47 (422) (400) 36 (786) (3,889)
Capital expenditures, typically low in Q1, largely offset by operating cash flow Capex profile consistent with FY plan Favorable impact of mark-to-market derivatives
• •
(1)
2010 includes dividends, capital increases and change in scope between Fiat & Fiat Industrial groups not related to demerger
April 20, 2011
Q1 ‘11 Results Review
7
1 2 3 4 5
Fiat Group Automobiles
Luxury & Performance brands
Magneti Marelli
Fiat Powertrain
Outlook
1
Fiat Group Automobiles
Quarterly industry volumes & outlook
Q1 ‘11
FY ‘11 expectations
Passenger cars: industry performance in Europe still negative but progressive quarterly improvement compared to a year ago when demand largely driven by ecoincentives
Overall market down to 3.7mn units Sharp decline in Italy (~23% to 514k units, the lowest level in last 20 years) & Spain (~27%) with UK down ~9%, as Q1 ’10 still dominated by boost of eco-incentives Strong rebound in Germany (~14%) with realignment of demand towards higher segments; final benefit of eco-incentives in France driving demand up ~9% vs. prior year Overall positive trend (~7%) in minor markets driven by double-digit growth in the Netherlands, Austria & Sweden (2.0)% (23.1)% +0.8%
Passenger cars
EU27+EFTA
Passenger cars: slightly better outlook than previous forecast with market now seen at ~13.6mn units mostly on the back of double-digit growth in Germany partly offset by declines in Italy, Spain & France; upcoming new products expected to improve FGA share in H2 vs. H1 LCVs: continued recovery in overall industry with positive performance in major markets (ex Spain); Fiat Professional expected to maintain a leading position
EU27 +EFTA ITA BRA
~(1.5)% ~(5)% ~3%
Q1 ‘11
(change vs. prior year)
FY ‘11E
(change vs. prior year)
LCVs: consolidating positive trend in EU27+EFTA started in Q1 ’10 and off abnormally low base in 2009 with mixed performance across major markets
Double-digit growth in UK (~28%) & Germany (~19%) and good performance in France (~8%) Market decline in Spain (~8%) & Italy (~6%), still hindered by existence of eco-incentive programs a year ago
+11.3% (6.1)% +16.2%
EU27 +EFTA ITA BRA
~8% ~3% ~7%
Brazil: overall industry expected at ~3.5mn units; Fiat share projected in line with 2010 level
LCVs
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Q1 ‘11 Results Review
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1
Fiat Group Automobiles
Passenger car business dynamics in Q1 2011
Market Share
(%)
•
31.8 30.7 7.8
EU27+EFTA
32.2 31.1 8.3 8.9 8.1 8.6
Q1 share at 7.1% in EU27+EFTA (262k registrations), down 1.5 p.p. mainly driven by unfavorable market mix; 30 bps improvement over Q4 ’10
31.4 29.0 7.1
Italy
Steep decline in CNG & LPG powered vehicles (~90%) driving down demand FGA share up 1.4 p.p. ex alternative-fuel market
Europe ex-Italy share at 3.6% (-0.1 p.p.)
Share in each major market substantially unchanged Strong performance continuing in some minor markets, including the Netherlands (+2.2 p.p. taking full advantage of CO2-related incentives) & Greece (+1.9 p.p.)
By brand
Fiat at 5.3% (-1.7 p.p. or 68k units) mainly driven by tough comps in Italy Lancia at 0.7% with market awaiting new Ypsilon in Q2 Alfa Romeo back above 1% share for first Q1 since 2007 (+0.4 p.p. to 1.1% on the back of Giulietta success)
• Since expiry of eco-incentives
in Italy, progressive improvement in year-overyear comparison of quarterly market share
30,3
• Trend in absolute share
Successful introduction of Alfa
Romeo Giulietta and “MyLife” versions of Fiat Punto, Qubo, Doblò & Bravo
•
29,1
28,5
29,0
reversing in Q1 ’11
FGA recorded lowest level of CO2 in Europe in FY 2010 with 125.9 g/km, an improvement of 5 g/km on last year
Q2 '10
Q3 '10
Q4 '10
Q1 '11
Fiat brand ranked #1 for the 4th year running with 123.1 g/km (4.7 g/km less than 2009 average) with 10% reduction over last 4 years
10
April 20, 2011
Q1 ‘11 Results Review
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Fiat Group Automobiles
LCV market share dynamics in Q1 2011
Market Share
(%)
46.8 41.8 42.2 42.3 40.0 13.5
46.9
•
Brand registrations up ~5% to 58k units driven by a fresh and most complete model line-up combined with a strong dealer & service network
10.0
EU27+EFTA
10.6
11.5
12.1
12.8
Strong performance of New Doblò & Ducato
•
Fiat Professional share at 12.8% with gains in all five major markets
European share down 0.7 p.p. due to unfavorable market mix
Italy: +0.1 share gain to 46.9% in a declining market vs. last year when demand still boosted by eco-incentives Europe ex-Italy: stable share at 8.6% with overall registrations up 4k units
2006
2007
2008
2009
2010
2011
Nearing record Q1 share in Germany (12.3%) while best Q1 share ever in France (8.9%) & Spain (9.8%)
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Q1 ‘11 Results Review
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1
Fiat Group Automobiles
Latin America operations
•
Brazil: market dynamics in Q1
Betim plant running at full-capacity
1 vehicle every 20 seconds
•
37th consecutive quarter of market leadership Fiat’s overall share at 22.1% in a steadily growing market (+3.6% to 778k units) Continued growth of passenger car market (+0.8% vs. prior year when tax-break incentives in place) Fiat maintaining a leading position with share of 21.8%
All products performing well in Q1, with strong performance of best-selling products
Continued success of premium-priced Novo Uno (40k shipments) Siena: long-standing #1 position in C1-segment with 29k shipments Premium-priced Strada with ~50% share in small pick-up segment (28k shipments)
•
LCVs: strong market, up 16.2% to 158k units Fiat consolidating leadership position with 0.9 p.p. share gain to 23.2%
Highly competitive product line-up strengthened with introduction of 5 new models & versions in the quarter
Full coverage of A- & B-segments with launch of 3-door Novo Uno Bravo: very good market acceptance of Stilo replacement bringing up 0.4 p.p. share in C2-segment
Q1 ’11 registrations in Brazil
(overall market; ‘000 units)
200 180 160 140 120 100 80 60 40 20 0
Argentina: market dynamics in Q1
Strong industry performance (+27.7% vs. last year)
Passenger cars up 26.5% & 32.7% for LCVs
Highest Q1 registrations ever with Fiat’s overall share at 9.9%
Passenger cars at 10.2% LCVs at 9.0%
April 20, 2011
Second-shift started at Cordoba plant
Q1 ‘11 Results Review
12
1
Fiat Group Automobiles
Same genetics underneath
•
Successful performance in Q1 in line with annual volume target of 90-100k
~30k orders taken and ~25k shipments
• •
First FGA vehicle to come out of partnership with Chrysler, going on sale in Europe starting Q2 ’11
A perfect balance of technology, comfort & performance in a compact hatchback Common architecture for C& D-segment of FGA & Chrysler Group
•
Comprehensive solution for modern family’s everyday activities Built in Mexico, based on significantly refreshed Dodge Journey All power units produced and developed by Fiat Powertrain (except powerful Chrysler 3.6L V6 Pentastar gas engine and related automatic gearbox)
Now also a specific TwinAir version equipped with the greenest engine in market
Revolutionary 2-cyl gas MultiAir engine, more powerful (up to 10%) and fuel-efficient (up to 10%) vs. conventional gas engine of equivalent size Available in market in Q2 ’11
•
Available at launch in FWD version, powered by 2.0 MultiJet II (140-170hp) Pentastar engine, automatic transmission and 4WD to debut later
Chrysler Group started selling Fiat 500 in March in US & Canada
Built in Mexico under license of FGA
13
April 20, 2011
Q1 ‘11 Results Review
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Fiat Group Automobiles
A compact “supercar”
4C Concept
Unveiled at Geneva Motorshow
•
A “supercar” taking up brand’s sporting tradition, set to reinforce global growth
Expected to be commercialized by end of next year 1st Alfa Romeo car to re-entry US market in 2012
•
A 2-seater also embedding technology materials derived from 8C Competizione
&
Carbon, aluminum & rear-wheel drive Technology from models currently on sale
1750 liter 230+hp turbo gas engine Twin dry clutch transmission Alfa dynamic control selector
Q1 ‘11 Results Review 14
April 20, 2011
1
Fiat Group Automobiles
Upgrading Lancia to a full-liner player with 5 new products in a blink
A compact flagship with benefits of a large saloon
Expanded powertrain offering with MultiJet 105hp available from April 1.6
A city-limousine, the best selling minivan in Italy for past 4 years Fashion city-car, sharing architecture with Fiat 500 Targeting upper-end of B-segment
5-door concept addressing ~2/3 of segment vs. previous 3-door predecessor
Presented at 2011 Geneva Motorshow Based on significantly refreshed Chrysler 200
On sale from June across key European markets (launch in UK in September under Chrysler badge) A true icon in MPV category with 13mn units sold
First global flagship, a RWD equipped with segment leading standards
Derived from all-new Chrysler 300
Based on significantly refreshed Chrysler Town & Country The most advanced safety systems in market today and the most advanced entertainment system in its class
15
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Q1 ‘11 Results Review
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Fiat Group Automobiles
Gradually integrating Jeep brand into FGA distribution network in Europe
European model line-up
• • • • • • •
Founded 70 years ago A global & iconic brand, unique in the industry; categorized an entire segment Distinguished design and rugged authenticity Over 7mn Jeep vehicles on the road today worldwide, sold in 120+ countries Entire Jeep model range either renewed or significantly refreshed during 2010 2011 Jeep Grand Cherokee – 21 industry awards and climbing Targeting 125k units in Europe in 2014
•
Since May 2010, Jeep distribution in Europe gradually transferred to FGA and carried out through its National Sales Companies
Austria, Belgium, Czech Republic, Denmark, France, Germany, Hungary, Italy, Netherlands, Poland, Serbia, Spain, Sweden, Switzerland & UK now fully integrated
• •
A new Jeep distribution network in Europe (fully operational from June 2011) to consist of 430 dealerships Also technical integration continuing apace with sharing of know-how, manufacturing & environmental best practices
Introduction of MultiJet II technology on all-new 3.0-liter turbodiesel for Grand Cherokee
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1
Fiat Group Automobiles
Percent mix unit sold by segment in Q1 (EU27+EFTA passenger cars)
44% 38% 34% 35% 34% Q1 ‘09 Q1 ‘10 Q1 ‘11
45%
FGA mix by segment
•
New product launches underpinning targeted shift towards larger segments…
14% 7% 5% 6% 5% 3% 3% 4% 4% 5% 3% 4% 0% 0% 0%
Alfa Romeo Giulietta driving FGA’s product mix to a greater significance in Csegment with ~5% share in the 2nd largest market segment Jeep branded products led to a gain of 2.4 p.p. in SUV segment
2% 1% 2% 1% 1% 0%
•
Mini Small Compact Large MPV Compact MPV & MPV Large SUV LCV derivatives Others
…while maintaining historical strong presence in smaller ones
Equal weight in a declining Bsegment market (down 12% in EU and 37% in Italy vs. Q1 ’10 impacted by tail of incentives) on the back of successful introduction of Punto “MyLife” Robust presence in Mini notwithstanding European market re-alignment (Asegment down ~20% vs. a year ago) after exit from ecoincentives schemes with FGA gaining 2.1 p.p. segment share in Italy (flat performance in EU ex-Italy)
17
April 20, 2011
Q1 ‘11 Results Review
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Luxury & Performance brands – Ferrari
Another strong quarter
•
Strong top-line growth (+18.6% to €491mn) driven primarily by higher shipment volumes, especially 458 Italia & 599 GTO
Ferrari FF
Presented at Geneva Motorshow
Shipments up 6.7% to 1,691 cars
Increased shipments of both 8- & 12-cyl models (+6.5% & +8% respectively) NA remaining #1 market, recording 3.1% y-o-y increase China up 3.7% Remaining markets substantially in line with last year level
The most performing and versatile car in brand’s history
Revolutionary mid-front mounted V12, 4-seater and AWD capability
•
Trading profit up 36% to €53mn on higher volumes, more favorable mix and strong results from customization program
Margin up 1.4 p.p. to 10.8% Units sold by region (%)
458 Italia HELE (High Emotions Low Emissions)
Presented at Geneva Motorshow
European Top-5 41% USA 27% Japan 4% China 9%
The best-in-class in reference segment, with 15% CO2 reduction vs. basic model
Appointment of importer in the quarter for distribution in India, accessing the 58th market
Others 19%
First dealership to be inaugurated in Q2 ‘11 in New Delhi and a second planned for Mumbai before year-end
April 20, 2011
Q1 ‘11 Results Review
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2
Luxury & Performance brands – Maserati
Improved operating leverage on the back of higher volumes
•
Revenues up 6.3% to €135mn
1,467 cars, up 21.7%
Significant volume gains in USA, UK and Germany China continuing to demonstrate significant potential, becoming Maserati’s 2nd largest market
•
Trading profit at €9mn, 2.3x last year level
Trading margin at 6.7% (+3.6 p.p.)
GranCabrio Sport
Presented at Geneva Motorshow
Units sold by region (%)
Equipped with a more powerful and fuel-efficient version of marque’s 4.7 liter V8 (450hp and max torque of 510 Nm)
Japan 2%
European Top-5 23% USA 33%
China 18%
International reach expanded through appointment of an importer in India, a market with brand significant potential
Others 24%
April 20, 2011
Q1 ‘11 Results Review
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3
Magneti Marelli
Margin improvement on positive performance across business lines
•
Revenues up 16.7% to €1.5bn
All businesses contributing positively, particularly Lighting driven by sales to German customers Significant overall business expansion in LCVs, Brazil, NA & China Non-captive business at 55%
Order portfolio target through 2014 essentially reached with €0.6bn booked in the quarter
Major order acquisition driven by German, French & NA customers, including Chrysler Order intake from premium customers in Lighting up 35% vs. Q1 ’10 Significant growth in order acquisition in Chinese market
•
Trading profit up 79% to €34mn, margin at 2.3%
Higher sales volumes & improved production efficiencies more than offsetting cost pressure from increased components prices
(€mn)
9,000
High-Tech business lines accounting for ~60% of revenues
Powertrain
8,000 7,000 6,000 5,000
TBC
29%
17% 13%
4,000 3,000
Electronic Systems
Booked
Exhaust Systems Suspension Systems Plastic C. and M. Shock Absorbers After Market
41%
2,000 1,000 0 2010 2011E 2012E
IAM + OES
2013E
2014E
April 20, 2011
Q1 ‘11 Results Review
20
4
Fiat Powertrain
Enlarging diesel offerings while new products ramping up
• •
Diesel engine portfolio for both FGA & Chrysler Group offering rounded out with 2 state-of-the-art products through acquisition of Penske Corp’s 50% stake in VM Motori, jointly managed with GM
Revenue up 35% to €1.2bn (+17% on comparable basis) mostly driven by better mix
3.0 V6 to complete top-power requirements
Engines up 9% to 635k
• •
Continued growth of gasoline engine in Latin America partly offset by volume decline for passenger car applications in Europe Diesel volume increase in Europe driven by Alfa Romeo Giulietta and Fiat Doblò
• • •
Block in compact graphite iron to reduce weight MultiJet II technology with a very competitive fuel economy in category Easily upgradable to Euro6 standards
Trading profit of €23mn, up 15% on comparable basis
Favorable sales mix & manufacturing efficiencies offset by raw material increase, higher depreciation and R&D spending related to new product launches
3,0
•
Technology sharing and product portfolio integration with Chrysler proceeding apace
April 20, 2011 Q1 ‘11 Results Review
Shipments of 2.0 MultiJet II engines started in the quarter for application on Fiat Freemont
21
Q1 2011 – How it was for Chrysler Group
Strength across the board, outpacing North American markets
Industry
(000’s units)
3.112 2.588
• Group sales to end-customers up 23% to ~287k units in Q1 2011with retail sales up 51%
• Ram brand: +38% driven by double digit increase for both Pickup Trucks & Chassis Cabs • Jeep brand: +34% with increase for all current models • Dodge & Chrysler brands continuing to build momentum as new 2011 models resonate
with consumers
• Dodge: +24% in Q1 and +49% in March, the largest increase for Group brands • Chrysler: -9% in Q1 (+3% in March with car sales up 38%)
Q1 2010 Q1 2011 • March sales marking the best month since May 2008 and the 12th consecutive month of y-o-y sales increases
Industry
(000’s units)
332
339
• Group sales to end-customers up 10% to ~50k units in the quarter with March 2011 sales marking the 16th consecutive month of y-o-y sales increases • The only manufacturer to maintain a solid 3 of top-10 best-selling vehicles in Q1 2011
Q1 2010
Q1 2011
• • • •
Dodge Journey: #1 selling crossover (+52%) with all-time record sales in March Dodge Grand Caravan: #2 selling vehicle (+14%) Ram Pick-up: #3 selling vehicle (+21%), record March sales All-new Jeep Compass up 75% in March, Canada's most fuel-efficient 4x4
22
5
Outlook
FY 2011 targets for Fiat post-demerger confirmed
Revenues of ~€37bn Trading profit of €0.9 to 1.2bn Net Income of ~€ 0.3bn Capital expenditures of €4.0 to 4.5bn Net industrial debt between €1.5 and 1.8bn
April 20, 2011
Q1 ‘11 Results Review
23
Q2 & H2 2011 results
July
April 20, 2011
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24
APPENDIX
Fiat post-demerger
2010 revenues & trading profit by quarter
Top-line growth of 2.6% with favorable mix & FX (stable revenues at constant currency) partly offset by 2.6% decline in overall volumes
Trading Profit (€mn)
Passenger cars down 4.8% to 417k units (including 7k Jeep & Chrysler branded products in Europe sold by FGA) LCVs up 7.5% to 102k vehicles
•
153 130
Continued success of Alfa Romeo Giulietta and strong shipments in Latin America partly offsetting volume slide in Italy
Strong performance in Germany (+33.9%) & Rest of Europe (+10.0% driven by 11.5% increase in passenger cars) unable to offset declines in Italy (19.1%) & Spain (9.9%); France & UK flat Growth in Brazil keeping pace with 180k shipments in the quarter (+8.0% growth vs. a year ago), with LCVs recording an outstanding performance
Q1 ‘10
Q1 ‘11
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Fiat Group Automobiles
Trading profit variance & margin
(€mn)
•
153 24 (25) (19) 2.2% 1.9% (22) (22) 22 19 130
Overall shipments down ~21k units (ex Chrysler Group branded products) Improved mix from LCVs, Latin America & Alfa Romeo Giulietta more than offset by impacts from highly competitive market in Europe Purchasing & WCM efficiencies yielding results as planned R&D spending in line with cadence of new products SG&A mainly driven by increase in advertising for Alfa Romeo brand Other relates to FX translation
•
• •
Q1 ‘10
Volume
Price & Mix
Purchasing Net
Production Cost Absorp.
R&D
SG&A
Other
Q1 ‘11
• •
April 20, 2011
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29
Fiat Group Automobiles
Q1 ‘11 market & market share (ex Ferrari & Maserati)
Passenger Cars
Units 000
630 591 557 565 539 465 428
Registrations Units sold
580 554 532 545 500 481 517 527 514 519
571 564
556
Q1
April 20, 2011
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
33
Q1 ‘11 Results Review
Components
Teksid & Comau
171 Q1 ‘10
227 3 Q1 ‘11
228
277 1
Q1 ‘11
Q1 ‘10
Q1 ‘10
Q1 ‘11
Q1 ‘10
Q1 ‘11
•
Revenues up 32.7%
•
Revenues up 21.5%
Cast Iron business up 22.2% driven by positive performance in Mercosur, NAFTA and Europe Volumes for Aluminum business down 13.5%
Top-line growth mainly attributable to Powertrain Systems & Robotics operations, while Services operations in LA substantially in line with a year ago Order intake of €677mn, nearly doubling Q1 ’10 level, mainly driven by Body Welding & Powertrain Systems operations Order backlog at quarter-end up 47% to €931mn vs. 2010 year-end
•
Trading profit improvement primarily as result of volume increases
•
Slight increase in trading profit due to Robotics operations
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Q1 ‘11 Results Review
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Net debt breakdown
(€bn)
Dec. 31, ‘10 Cons. Ind. Fin. Cons. Gross Debt (2) Derivatives M-to-M, Net Cash & Mktable Securities Net Debt
Mar. 31, ’11 (1) Ind. Fin.
15.2 (0.3) (12.2) 2.7
12.7 (0.3) (11.9) 0.5
2.5 (0.3) 2.2
16.4 (0.4) (13.1) 2.9
13.8 (0.4) (12.9) 0.5
2.6 (0.2) 2.4
(1) Debt and cash proceeds from €1bn bond with maturity 2016 settled on April 1st, not included (2) Net of intersegment receivables and including:
(2.8)
(2.8)
-
Intercompany Receivables from Fiat Industrial, net
-
-
-
Note: Numbers may not add due to rounding April 20, 2011 Q1 ‘11 Results Review 35
Cash Maturities Bank Debt Capital Market(2) Other Debt Securitization and Sale of Receivables (on book) ABS / Securitization Warehouse Facilities Sale of Receivables Adjust. for Hedge Accounting on Fin. Payables Intercompany Receivables from Fiat Industrial, net Gross Debt Cash & Mktable Securities Derivatives Fair Value Net Debt Available Committed Lines
(1) Debt and cash proceeds from €1bn bond with maturity 2016 settled on April 1st, not included (2) Excluding fair value of Bonds, including interest accruals (3) €13.2bn including impact of repayment of €2.8bn intercompany receivables by Fiat Industrial, net of reimbursement of €1.7bn in bank debt, occurred Jan 2011 Note: Numbers may not add due to rounding April 20, 2011 Q1 ‘11 Results Review 36
Debt maturity schedule(1)
(€bn)
Outstanding Mar. 31, ‘11
Next 12 M
9M 2011
2012
2013
2014
2015
Beyond
5.2 9.0 1.4 15.6
Bank Debt Capital Market(2) Other Debt Total Cash Maturities
2.7 2.8 0.9 6.4
1.5 2.8 0.9 5.2
1.8 1.5 0.1 3.3
1.0 1.0 0.1 2.1
0.4 1.2 0.0 1.6
0.4 1.5 0.1 2.0
0.1 1.0 0.2 1.4
13.1
0.0
Cash & Mktable Securities
of which Restricted Cash
3.3
2.3
Sale of Receivables (IFRS de-recognition compliant)
of which receivables sold to financial services JVs (FGA Capital)
(1) Debt & cash proceeds from €1bn bond with maturity 2016 settled on April 1st, not included (2) Excluding fair value of bonds, including interest accruals Note: Numbers may not add due to rounding April 20, 2011 Q1 ‘11 Results Review 37
Financial charges breakdown
Q1 ’11 vs. Q1 ‘10
Average Outstanding (€bn)
Rate/Spread (%)
Net Charges (€mn) 2010 2011 Chg
Net Industrial Debt Q1 ’11 Net Industrial Debt Q1 ’10
(0.8) (3.7)
5.3% 4.7% (43)
(11)
32
“Cost of Carry” Q1 ’11 “Cost of Carry” Q1 ’10
(1)
(11.9) (7.7)
3.2% 3.3% (63)
(95)
(32)
Equity Swap (hedging stock option plans) IAS 19 (interest cost on pension & OPEB) Others
(indirect Taxes on banking transactions, fees, FX, interest cost on long-term provisions, discount of certain receivables...)
(13) (12) (11)
23 (10) (45)
36 2 (34)
NET FINANCIAL CHARGES
(142)
(138)
4
(1)
Net of cash deposited by Fiat Industrial Q1 ‘11 Results Review 38
April 20, 2011
Safe Harbor Statement
Certain information included in this document is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially. The Company's businesses include its automotive, automotive-related and other sectors, and its outlook is predominantly based on its interpretation of what it considers to be the key economic factors affecting these businesses. Forward-looking statements with regard to the Group's businesses involve a number of important factors that are subject to change, including: the many interrelated factors that affect consumer confidence and worldwide demand for automotive and automotive-related products; governmental programs; general economic conditions in each of the Group's markets; legislation, particularly that relating to automotive-related issues, the environment, trade and commerce and infrastructure development; actions of competitors in the various industries in production which the Group competes; difficulties, including capacity and supply constraints and excess inventory levels; labor relations; interest rates and currency exchange rates; political and civil unrest; weather, floods, earthquakes or other natural disasters, and other risks and uncertainties. Any forward-looking statements contained in this document are
April 20, 2011
referred to the current date and, therefore, any of the assumptions underlying this document or any of the circumstances or data mentioned in this document may change. Fiat expressly disclaims and does not assume any liability in connection with any inaccuracies in any of these forwardlooking statements or in connection with any use by any third party of such forward-looking statements. This document does not represent investment advice or a recommendation for the purchase or sale of financial products and/or of any kind of financial services. Finally, this document does not represent an investment solicitation in Italy, pursuant to Section 1, letter (t) of Legislative Decree no. 58 of February 24, 1998, or in any other country or state. The data related to Chrysler Group LLC were independently prepared by Chrysler Group LLC and, to the extent they make reference or are related to the data publicly disclosed on November 4, 2009 and to other Chrysler Group LLC documents (collectively “the Chrysler Documents”), are subject to the disclaimers of the Chrysler Documents and the forward looking statements set forth therein and that are herein incorporated by reference.
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